Government Reduces Crown Executive Compensation
The Government of Saskatchewan announced today that Crown Corporation executive compensation will be reduced beginning in fiscal year 2021-22. Crown executives at the Chief Executive Officer and Vice President levels will see their salary holdback eligibility reduced by 66.7 per cent, with holdbacks eliminated entirely for executives of the Crown Investments Corporation of Saskatchewan.
Salary holdbacks are the incentive-based portion of each executives' salary and are a significant element of their total cash compensation. Prior to the change, salary holdbacks could add between 10 per cent and 25 per cent to an executive's cash compensation, depending on their management level and size and scope of their organization.
"Our Crown sector executives are dedicated and committed public servants who do their very best for the people of Saskatchewan each and every day," Crown Investments Minister and Minister Responsible for all Major Crowns Don Morgan said. "However, we believe that Crown sector executive compensation was simply too high relative to public expectations, particularly in relation to the difficult economic times associated with our recovery from the COVID-19 pandemic."
As a result of the changes announced today, Crown executives will see their annual cash compensation reduced between 6.7 and 25 per cent, as a percentage of their base salaries. Individual salary impacts will range from a reduction of approximately $9,400 per year to just over $111,000 per year for executives at the top of their salary bands, depending on their managerial level and which organization they work for. Total compensation savings are estimated to be $1.82 million per year.
The changes apply to 54 executives at eight Crown corporations including Crown Investments Corporation, SaskPower, SaskEnergy, SaskTel, SGI, SaskWater, SOCO and SaskGaming. Crown sector salaries, for all those making more than $50,000/year, are listed in the Crown Sector Payee Disclosure Report annually and tabled with the Standing Committee on Crown and Central Agencies.